At the end of September, Republicans outlined their tax reform proposal. It called for eliminating all itemized deductions except the mortgage interest and charity deductions. This raised immediate concerns at NAELA that the Medical Expense Deduction could get eliminated.
early November, the House released its tax package. It ended the medical expense deduction. NAELA was prepared and able to respond quickly, focusing on the potential devastating impact on individuals in need of long-term services and supports.
NAELA also worked with AARP to build a loose coalition of supporters of the deduction that grew from less than a handful of organizations to more than 60, including the American Cancer Society, the March of Dimes, and LeadingAge.
Thanks to these coalition efforts, the Senate tax package not only retains the medical expense deduction, but temporarily expands it. Under the Senate bill, for 2018-19, there is a threshold to 7.5 percent of AGI.
Negotiations starting this week between the House and Senate will be crucial to determining the fate of the deduction. NAELA continues to work with AARP and other organizations in support of the Senate provisions. Contact your member of Congress today and urge them to take up the Senate's Medical Expense Deduction provisions in the final tax bill.